]]>By: larryhttp://blog.hsh.com/index.php/2011/09/who-is-responsible-for-fannie-mae-and-freddie-mac-losses/comment-page-1/#comment-1018542
larryFri, 09 Sep 2011 15:04:18 +0000http://blog.hsh.com/?p=54562#comment-1018542That is BS. It's liberal government pressures that bullied backs into making bad loans. Listen to Maxine Waters comments on "gangsta banks". "We'll just tax them out of biness". That is a recap of the pressures applied that created a bubble. Bad appraisers, look again to these communities.That is BS. It’s liberal government pressures that bullied backs into making bad loans. Listen to Maxine Waters comments on “gangsta banks”. “We’ll just tax them out of biness”. That is a recap of the pressures applied that created a bubble. Bad appraisers, look again to these communities.
]]>By: Mortgage Rates Fall to Record Lows of 4.12% on Average – Fannie Mae « John Murphy Reportshttp://blog.hsh.com/index.php/2011/09/who-is-responsible-for-fannie-mae-and-freddie-mac-losses/comment-page-1/#comment-1016702
Mortgage Rates Fall to Record Lows of 4.12% on Average – Fannie Mae « John Murphy ReportsThu, 08 Sep 2011 19:08:03 +0000http://blog.hsh.com/?p=54562#comment-1016702[...] Who is responsible for Fannie Mae and Freddie Mac losses? (hsh.com) [...][...] Who is responsible for Fannie Mae and Freddie Mac losses? (hsh.com) [...]
]]>By: Ebanohttp://blog.hsh.com/index.php/2011/09/who-is-responsible-for-fannie-mae-and-freddie-mac-losses/comment-page-1/#comment-1016272
EbanoThu, 08 Sep 2011 15:33:41 +0000http://blog.hsh.com/?p=54562#comment-1016272Don't mistake the losses in the quarterly results for the losses when a home is foreclosured.
FnF's losses are caused mainly by the provision to build up a Reserve Fund.
Freddie Mac's Reserve Fund for future losses was just 0.30% of the mortgage portfolio just before conservatorship (2Q 2008) and now stands at 2.01%.
FnF have a combined $113.9 billion Reserve Fund as of end of June.
The U.S. governmetn just has scared the taxpayer, but the reality is that the losses are caused by an over-reseved Fund.
More provisions, more losses ,then less Tier1 capital, then more Reserve Fund, more Tier 2 capital.
Less Tier1 captial in exchange of more Tier2 capital.
Not big deal.Don’t mistake the losses in the quarterly results for the losses when a home is foreclosured.
FnF’s losses are caused mainly by the provision to build up a Reserve Fund.
Freddie Mac’s Reserve Fund for future losses was just 0.30% of the mortgage portfolio just before conservatorship (2Q 2008) and now stands at 2.01%.
FnF have a combined $113.9 billion Reserve Fund as of end of June.
The U.S. governmetn just has scared the taxpayer, but the reality is that the losses are caused by an over-reseved Fund.
More provisions, more losses ,then less Tier1 capital, then more Reserve Fund, more Tier 2 capital.
Less Tier1 captial in exchange of more Tier2 capital.
Not big deal.
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